Bahrain-Agriculture and Fishing Bahrain -- The Economy

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Despite the scant rainfall and poor soil, agriculture
historically was an important sector of the economy.
Before the
development of the oil industry, date palm cultivation
dominated
Bahrain's agriculture, producing sufficient dates for both
domestic consumption and export. At least twenty-three
varieties
of dates are grown, and the leaves, branches, buds, and
flowers
of the date palm also are used extensively. From the 1950s
through the 1970s, changing food consumption habits, as
well as
the increasing salinity of the aquifers that served as
irrigation
sources, led to a gradual decline in date cultivation. By
the
1980s, a significant number of palm groves had been
replaced by
new kinds of agricultural activities, including vegetable
gardens, nurseries for trees and flowers, poultry
production, and
dairy farms.

By 1993 Bahrain's cultivated area had been reduced from
6,000
hectares before independence to 1,500 hectares. The
cultivated
land consists of about 10,000 plots ranging in size from a
few
square meters to four hectares. These plots are
distributed among
approximately 800 owners. A minority of large owners,
including
individuals and institutions, are absentee landlords who
control
about 60 percent of all cultivable land. The ruling Al
Khalifa
own the greatest number of plots, including the largest
and most
productive ones, although public information pertaining to
the
distribution of ownership among family members is not
available.
Absentee owners rent their plots to farmers, generally on
the
basis of three-year contracts. There are approximately
2,400
farmers, 70 percent of whom do not own the land they
cultivate.

The small size of most plots and the maldistribution of
ownership has tended to discourage private investment in
agriculture. In addition, the number of skilled
farmworkers
progressively declined after 1975 because an increasing
number of
villagers obtained high-paying, nonagricultural jobs.
Despite
these impediments, official government policy since 1980
has
aimed at expanding domestic production of crops through
such
programs as free distribution of seeds, technical
assistance in
adopting new and more efficient irrigation technologies,
and lowinterest credit. Although these programs have contributed
to
significant increases in the production of eggs, milk, and
vegetables, the circumscribed extent of Bahrain's
cultivable area
limits the island's potential productive capacity.
Consequently,
agricultural imports remain a permanent aspect of the
country's
international trade. In 1993 the main food imports
included
fruits, vegetables, meat, live animals (for slaughter),
cereals,
and dairy products.

The waters surrounding Bahrain traditionally have been
rich
in more than 200 varieties of fish, many of which
constitute a
staple of the diet. Before the development of the oil
industry,
most males engaged in some form of fishing. In addition,
the
pearl industry constituted one of the most important bases
of the
island's wealth, and more than 2,000 pearling boats
operated
during the late 1920s. After 1935 both fishing and
pearling as
occupations steadily declined. Although the prospect of
steady
wages attracted many pearl divers to oil-related jobs,
pearling
was even more adversely affected by the development in
Japan of
the cultured pearl. By 1953 only twelve pearling boats
remained,
and these all disappeared within a decade. Fishing
declined more
gradually, but by the early 1970s fewer than 1,000
fishermen
continued to ply their trade. Fewer fishermen meant less
fish
available in the market despite rising consumer demand,
and this
situation led to the annual importation of tons of fish to
supplement the local catch. In 1981 the government
launched a
program to revitalize the fishing industry by introducing
trawlers, motorizing the traditional dhows, expanding
jetties,
constructing cold storage facilities, and offering
training
courses on the use and maintenance of modern fishing
equipment.
These initiatives contributed to an increase in the total
fish
catch, which according to estimates of the Food and
Agriculture
Organization of the United Nations, was 9,200 tons in
1989.

Pollution in the Persian Gulf became a problem in the
1970s.
Shrimp in the northern gulf seemed particularly sensitive
to
marine pollution, and by 1979 they had almost disappeared
from
waters near Bahrain. Pollution was seriously aggravated in
1983
and again in 1991 by major oil slicks that emanated from
wardamaged oil facilities and covered several thousand square
kilometers of water in the northern Persian Gulf. The
slicks were
detrimental to the unique marine life in the vicinity of
Bahrain,
including coral reefs, sea turtles, dugongs (herbivorous
sea
mammals similar to manatees), oyster beds and shrimp beds,
numerous fish species, and water fowl. The oil slicks,
especially
those of 1991, adversely affected the fishing industry,
but as of
early 1993, marine biologists remained uncertain about the
longterm ecological impact of the pollution.

Data as of January 1993

Agriculture and Fishing

Despite the scant rainfall and poor soil, agriculture
historically was an important sector of the economy.
Before the
development of the oil industry, date palm cultivation
dominated
Bahrain's agriculture, producing sufficient dates for both
domestic consumption and export. At least twenty-three
varieties
of dates are grown, and the leaves, branches, buds, and
flowers
of the date palm also are used extensively. From the 1950s
through the 1970s, changing food consumption habits, as
well as
the increasing salinity of the aquifers that served as
irrigation
sources, led to a gradual decline in date cultivation. By
the
1980s, a significant number of palm groves had been
replaced by
new kinds of agricultural activities, including vegetable
gardens, nurseries for trees and flowers, poultry
production, and
dairy farms.

By 1993 Bahrain's cultivated area had been reduced from
6,000
hectares before independence to 1,500 hectares. The
cultivated
land consists of about 10,000 plots ranging in size from a
few
square meters to four hectares. These plots are
distributed among
approximately 800 owners. A minority of large owners,
including
individuals and institutions, are absentee landlords who
control
about 60 percent of all cultivable land. The ruling Al
Khalifa
own the greatest number of plots, including the largest
and most
productive ones, although public information pertaining to
the
distribution of ownership among family members is not
available.
Absentee owners rent their plots to farmers, generally on
the
basis of three-year contracts. There are approximately
2,400
farmers, 70 percent of whom do not own the land they
cultivate.

The small size of most plots and the maldistribution of
ownership has tended to discourage private investment in
agriculture. In addition, the number of skilled
farmworkers
progressively declined after 1975 because an increasing
number of
villagers obtained high-paying, nonagricultural jobs.
Despite
these impediments, official government policy since 1980
has
aimed at expanding domestic production of crops through
such
programs as free distribution of seeds, technical
assistance in
adopting new and more efficient irrigation technologies,
and lowinterest credit. Although these programs have contributed
to
significant increases in the production of eggs, milk, and
vegetables, the circumscribed extent of Bahrain's
cultivable area
limits the island's potential productive capacity.
Consequently,
agricultural imports remain a permanent aspect of the
country's
international trade. In 1993 the main food imports
included
fruits, vegetables, meat, live animals (for slaughter),
cereals,
and dairy products.

The waters surrounding Bahrain traditionally have been
rich
in more than 200 varieties of fish, many of which
constitute a
staple of the diet. Before the development of the oil
industry,
most males engaged in some form of fishing. In addition,
the
pearl industry constituted one of the most important bases
of the
island's wealth, and more than 2,000 pearling boats
operated
during the late 1920s. After 1935 both fishing and
pearling as
occupations steadily declined. Although the prospect of
steady
wages attracted many pearl divers to oil-related jobs,
pearling
was even more adversely affected by the development in
Japan of
the cultured pearl. By 1953 only twelve pearling boats
remained,
and these all disappeared within a decade. Fishing
declined more
gradually, but by the early 1970s fewer than 1,000
fishermen
continued to ply their trade. Fewer fishermen meant less
fish
available in the market despite rising consumer demand,
and this
situation led to the annual importation of tons of fish to
supplement the local catch. In 1981 the government
launched a
program to revitalize the fishing industry by introducing
trawlers, motorizing the traditional dhows, expanding
jetties,
constructing cold storage facilities, and offering
training
courses on the use and maintenance of modern fishing
equipment.
These initiatives contributed to an increase in the total
fish
catch, which according to estimates of the Food and
Agriculture
Organization of the United Nations, was 9,200 tons in
1989.

Pollution in the Persian Gulf became a problem in the
1970s.
Shrimp in the northern gulf seemed particularly sensitive
to
marine pollution, and by 1979 they had almost disappeared
from
waters near Bahrain. Pollution was seriously aggravated in
1983
and again in 1991 by major oil slicks that emanated from
wardamaged oil facilities and covered several thousand square
kilometers of water in the northern Persian Gulf. The
slicks were
detrimental to the unique marine life in the vicinity of
Bahrain,
including coral reefs, sea turtles, dugongs (herbivorous
sea
mammals similar to manatees), oyster beds and shrimp beds,
numerous fish species, and water fowl. The oil slicks,
especially
those of 1991, adversely affected the fishing industry,
but as of
early 1993, marine biologists remained uncertain about the
longterm ecological impact of the pollution.

In 1783, the al-Khalifa family captured Bahrain from the Persians. In order to secure these holdings, it entered into a series of treaties with the UK during the 19th century that made Bahrain a British protectorate. The archipelago attained its independence in 1971. Bahrain's small size and central location among Persian Gulf countries require it to play a delicate balancing act in foreign affairs among its larger neighbors. Facing declining oil reserves, Bahrain has turned to petroleum processing and refining and has transformed itself into an international banking center. King HAMAD bin Isa al-Khalifa, after coming to power in 1999, pushed economic and political reforms to improve relations with the Shia community. Shia political societies participated in 2006 parliamentary and municipal elections. Al Wifaq, the largest Shia political society, won the largest number of seats in the elected chamber of the legislature. However, Shia discontent has resurfaced in recent years with street demonstrations and occasional low-level violence.

Location

Middle East, archipelago in the Persian Gulf, east of Saudi Arabia

Area(sq km)

total: 741 sq kmland: 741 sq kmwater: 0 sq km

Geographic coordinates

26 00 N, 50 33 E

Land boundaries(km)

0 km

Coastline(km)

161 km

Climate

arid; mild, pleasant winters; very hot, humid summers

Elevation extremes(m)

lowest point: Persian Gulf 0 mhighest point: Jabal ad Dukhan 122 m

Natural resources

oil, associated and nonassociated natural gas, fish, pearls

Land use(%)

arable land: 2.82%permanent crops: 5.63%other: 91.55% (2005)

Irrigated land(sq km)

40 sq km (2003)

Total renewable water resources(cu km)

0.1 cu km (1997)

Freshwater withdrawal (domestic/industrial/agricultural)

total: 0.3 cu km/yr (40%/3%/57%)per capita: 411 cu m/yr (2000)

Natural hazards

periodic droughts; dust storms

Environment - current issues

desertification resulting from the degradation of limited arable land, periods of drought, and dust storms; coastal degradation (damage to coastlines, coral reefs, and sea vegetation) resulting from oil spills and other discharges from large tankers, oil refineries, and distribution stations; lack of freshwater resources (groundwater and seawater are the only sources for all water needs)

red, the traditional color for flags of Persian Gulf states, with a white serrated band (five white points) on the hoist side; the five points represent the five pillars of Islam

Economy - overview

With its highly developed communication and transport facilities, Bahrain is home to numerous multinational firms with business in the Gulf. Petroleum production and refining account for over 60% of Bahrain's export receipts, over 70% of government revenues, and 11% of GDP (exclusive of allied industries), underpinning Bahrain's strong economic growth in recent years. Aluminum is Bahrain's second major export after oil. Other major segments of Bahrain's economy are the financial and construction sectors. Bahrain is focused on Islamic banking and is competing on an international scale with Malaysia as a worldwide banking center. Bahrain is actively pursuing the diversification and privatization of its economy to reduce the country's dependence on oil. As part of this effort, in August 2006 Bahrain and the US implemented a Free Trade Agreement (FTA), the first FTA between the US and a Gulf state. Continued strong growth hinges on Bahrain's ability to acquire new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries. Unemployment, especially among the young, and the depletion of oil and underground water resources are long-term economic problems. The global financial crisis is likely to result in slower economic growth for Bahrain during 2009 as tight international credit and a slowing global economy cause funding for many non-oil projects to dry up. Lower oil prices may also cause Bahrain's budget to slip back into deficit.

general assessment: modern systemdomestic: modern fiber-optic integrated services; digital network with rapidly growing use of mobile-cellular telephonesinternational: country code - 973; landing point for the Fiber-Optic Link Around the Globe (FLAG) submarine cable network that provides links to Asia, Middle East, Europe, and US; tropospheric scatter to Qatar and UAE; microwave radio relay to Saudi Arabia; satellite earth station - 1 (2007)

17 years of age for voluntary military service; 15 years of age for NCOs, technicians, and cadets; no conscription (2008)

Manpower available for military service

males age 16-49: 210,938females age 16-49: 170,471 (2008 est.)

Manpower fit for military service

males age 16-49: 171,004females age 16-49: 144,555 (2009 est.)

Manpower reaching militarily significant age annually

male: 6,612female: 6,499 (2009 est.)

Military expenditures(% of GDP)

4.5% of GDP (2006)

Disputes - international

none

Trafficking in persons

current situation: Bahrain is a destination country for men and women trafficked for the purposes of involuntary servitude and commercial sexual exploitation; men and women from Africa, South Asia, and Southeast Asia migrate voluntarily to Bahrain to work as laborers or domestic servants where some face conditions of involuntary servitude such as unlawful withholding of passports, restrictions on movements, non-payment of wages, threats, and physical or sexual abuse; women from Thailand, Morocco, Eastern Europe, and Central Asia are trafficked to Bahrain for the purpose of commercial sexual exploitationtier rating: Tier 2 Watch List - Bahrain is on the Tier 2 Watch List for failing to show evidence of increased efforts to combat human trafficking, particularly efforts that enforce laws against trafficking in persons, and that prevent the punishment of victims of trafficking; during 2007, Bahrain passed a comprehensive law prohibiting all forms of trafficking in persons; the government also established a specialized anti-trafficking unit within the Ministry of Interior to investigate trafficking crimes; however, the government did not report any prosecutions or convictions for trafficking offenses during 2007, despite reports of a substantial problem of involuntary servitude and sex trafficking (2008)

Electricity - production(kWh)

10.25 billion kWh (2007 est.)

Electricity - production by source(%)

fossil fuel: 100%hydro: 0%nuclear: 0%other: 0% (2001)

Electricity - consumption(kWh)

10.1 billion kWh (2007 est.)

Electricity - exports(kWh)

0 kWh (2008 est.)

Electricity - imports(kWh)

0 kWh (2008 est.)

Oil - production(bbl/day)

48,520 bbl/day (2008 est.)

Oil - consumption(bbl/day)

38,000 bbl/day (2008 est.)

Oil - exports(bbl/day)

238,300 bbl/day (2007 est.)

Oil - imports(bbl/day)

228,400 bbl/day (2007 est.)

Oil - proved reserves(bbl)

124.6 million bbl (1 January 2009 est.)

Natural gas - production(cu m)

12.64 billion cu m (2008 est.)

Natural gas - consumption(cu m)

12.64 billion cu m (2008 est.)

Natural gas - exports(cu m)

0 cu m (2008)

Natural gas - proved reserves(cu m)

92.03 billion cu m (1 January 2009 est.)

HIV/AIDS - adult prevalence rate(%)

0.2% (2001 est.)

HIV/AIDS - people living with HIV/AIDS

fewer than 600 (2007 est.)

HIV/AIDS - deaths

fewer than 200 (2003 est.)

Literacy(%)

definition: age 15 and over can read and writetotal population: 86.5%male: 88.6%female: 83.6% (2001 census)